With CoinLoan, you have access to a consolidated platform for managing all of your digital assets, allowing you to invest, borrow, and trade crypto with ease.
Is CoinLoan a reliable crypto investing and lending platform? How does it compare to the alternatives? Our in-depth CoinLoan review will help you make a well-informed decision. Next on.
What Is CoinLoan?
CoinLoan was one of the first to offer cryptocurrency loans secured by fiat cash, making it a true industry innovator. Currently, CoinLoan has over 200,000 active users throughout the globe.
The year 2017 marked the beginning of operations for the crypto lending company known as CoinLoan. Headquartered in Tallinn, Estonia, CoinLoan was founded by Max Sapelov and Alex Faliushin, two digital entrepreneurs with extensive experience in cybersecurity.
According to the company’s website, CoinLoan’s mission is to give borrowers and lenders access to crypto loans by creating a decentralized marketplace. In addition, this platform makes things easier for crypto enthusiasts who prefer to keep all their trading and lending resources in one place.
Essentially, CoinLoan represents an interconnected network of software, fintech professionals, and information. This team of developers, supported by innovative blockchain technology, assists clients in managing their digital assets by providing them with a specialized platform for crypto lending and options for generating passive income.
If you are already making use of several different cryptocurrency exchanges and savings accounts, shifting to CoinLoan could help you streamline your financial dealings. Here’s how.
For most people, using CoinLoan means either taking out a loan or earning passive income with their cryptocurrency holdings. Transferring digital assets is streamlined on the platform, thanks to CoinLoan Trade.
With CoinLoan Trade, you can buy and sell cryptocurrencies and fiat currencies by combining them in over 150 trading pairs through the platform’s built-in exchange. To get started, fund your CoinLoan wallet with any combo of fiat currency, cryptocurrency, or stablecoins. Then, you’ll be able to buy any of the tenable assets that CoinLoan supports effortlessly.
CoinLoan Borrow refers to the suite of borrowing features offered by CoinLoan. This provides fiat and cryptocurrency borrowers access to extremely flexible, crypto-backed loan instruments.
You don’t need a perfect credit score to get a loan with CoinLoan since you can use a collateral asset as a security for repaying the loan. Borrowers can agree to an interest-free pre-payment period of up to 30 days, regardless of how long their loan term really is. They must repay the remaining loan balance with the asset of their choosing or the collateral.
The loan-to-value (LTV) ratio determines the ultimate interest rate amount. It is common practice for lenders to offer more favorable conditions to borrowers who supply more substantial collateral. When a customer gets a loan, they can increase the amount of collateral if the conditions are right. Therefore, the borrower won’t have problems paying the loan’s interest back.
Loans Backed by Cryptocurrency
The CoinLoan platform is a client-focused solution that makes it possible for anybody to obtain a loan secured by crypto-collateral on terms that are both customizable and affordable. CoinLoan charges an interest rate on loans starting at 4.5%, and the Loan-to-Value ratio (LTV) choices range from 20 to 70%.
When you use cryptocurrency as collateral for loans, one of the primary benefits is that you do not have to sell any cryptocurrency holdings to obtain the funds you need.
If you have crypto, for instance, you can act as a borrower and use it as collateral for loans. This means that you do not need to fret about your credit rating or other stringent borrower criteria to get a loan.
To obtain a loan through CoinLoan, the first step is to put collateral into your account. You can make deposits using the cryptocurrencies supported by the platform, such as Bitcoin (BTC) and Ethereum (ETH).
After that, you will need to input the quantity of your loan, the asset against which you are taking out loans, the duration of your loan, plus the loan-to-value (LTV) rate of return. There’s a range of LTV ratios from 20% to 70%; the lower the ratio, the less collateral is required to secure a loan, but the higher the interest rate will be.
One characteristic that sets CoinLoan apart is the capability to provide reversed loans. Either fiat currency or crypto backs these loans. To illustrate, Bitcoin can be borrowed in exchange for US Dollars or any other asset on the CoinLoan’s lending market.
Finally, it’s important to know that CLT tokens can be used to gain a 50% reduction on loan fees.
Crypto Interest Accounts
CoinLoan offers an interest account, as do many other crypto businesses. It doesn’t cost anything to open an account, and once you do, you can start earning daily interest on a wide range of cryptocurrencies as well as fiat currency.
To this end, there are two types of interest accounts on CoinLoan – fixed and flexible. You can put your money in safe custody with a Fixed Account, and when the period of your deposit is over, the capital plus any income earned will be added to your digital wallet.
On the other hand, the funds you put into a Flexible Account can be withdrawn and redeposited at any time. Your account will be updated monthly on the first with the previous month’s interest.
Some major cryptocurrencies, such as Bitcoin and Cardano, are among the roughly 20 assets you can use to fund your CoinLoan’s interest account. However, you can also receive interest on deposits of Euros, Great British Pounds, and USD Coin (USDC) if you choose to.
The annual percentage yield (APY) offered by the majority of assets is currently 7.2%, which is significantly greater than the interest rate offered by a standard high-interest savings account.
CoinLoan will provide your earned interest in the form of the deposit currency. Therefore, a Cardano account will earn interest in the form of Cardano. In addition, there is no upper limit on the deposit period, which has a minimum of just one day.
It is crucial to keep in mind that to earn the highest possible interest rate on any asset, you will also need to purchase CoinLoan tokens (CLT) and stake them.
The CLT Token Staking Option
CoinLoan Token (CLT) is the network’s native token, and you can acquire it exclusively on the platform. Although you won’t receive interest payments for staking CLT, it will increase the interest rates on other assets in your cryptocurrency investment account.
This is how CLT stake tiers function:
- 125 CLT raise the interest rate by 0.1%;
- 375 CLT raise the interest rate by 0.3%;
- 1,000 CLT raise the interest rate by 0.8%;
- 1,250 CLT raise the interest rate by 1%;
- 2,500 CLT raise the interest rate by 2%.
CLT is priced at roughly $30 per unit at the moment, meaning that you will need to spend at least $3,750 only to begin earning somewhat more interest. The interest rates that CoinLoan offers are a little bit less than the majority of its clients would probably anticipate.
Nevertheless, even if you earn a basic rate of 5.2% annual percentage yield (APY) on most cryptocurrencies or 10.3% on fiat currency, this is still a considerably better option than letting your idle assets just sit there doing nothing.
How to Open a CoinLoan Account?
When you sign up for CoinLoan, you’ll need to provide personal information like your email address and a strong password. After you enter the verification number sent to your email, you can complete the Know Your Customer (KYC) verification and access all CoinLoan functionalities.
To comply with KYC regulations, you will need to enter your name, residence address, and contact number. CoinLoan also requires applicants to provide a selfie along with a government-issued ID copy, such as a passport or driver’s license.
Typically, this procedure requires no more than a few minutes. CoinLoan also works all over the world, but it says that some countries aren’t eligible because of the estimated financial risks. Therefore, you’ll have to go through the KYC verification to find out if your country is endorsed.
With around 20 supported digital assets, CoinLoan does not offer nearly as many asset options compared to major marketplaces like Binance and Coinbase. Buying cryptocurrency from another crypto marketplace and then moving it to your CoinLoan wallet is certainly a viable option.
However, buying cryptocurrency directly from CoinLoan saves you more time if you plan to use CoinLoan for generating passive income or taking loans.
CoinLoan does not impose any withdrawal or maintenance fees for your interest account. Similarly, there are no fees associated with making deposits, so if you merely want to utilize CoinLoan to earn interest, you can do so without spending a dime.
CoinLoan, however, does charge several fees for its loan and trade functions, including the following:
- To borrow money, you will have to pay a fee equal to 1% of the loan’s total;
- The liquidation fees are calculated as 7% of the total amount of the dissolved collateral for the loan;
- As we previously mentioned, if you pay for your borrowing fees using CLT tokens, you are entitled to a 50% discount;
- When you trade crypto using CoinLoan, you are also responsible for paying network fees, as you would on any crypto exchange;
- When you buy cryptocurrency with fiat currency, you’ll incur extra charges depending on your payment method.
Once you choose a trading pair and enter the amount you wish to invest, CoinLoan will show you the current exchange rate and the exact amount of the asset you are buying.
To participate in the CoinLoan market, you can transfer funds from another cryptocurrency wallet that contains EUR, GBP, USDC, or any other cryptocurrency or stablecoin.
CoinLoan also accepts a wide variety of payment options, including SEPA, SWIFT, AdvCash, Visa, and Mastercard-issued debit/credit cards, etc.
A cryptocurrency is a digital currency, and like any other currency, its security is a major concern. In addition, safeguarding your assets against cybercriminals and financial collapse is of the utmost importance if you are lending or borrowing money.
CoinLoan has several processes to ensure safety, which is greatly appreciated. One reason is that CoinLoan’s custodians, BitGo and Fireblocks, offer insurance for digital assets worth $100 million. CoinLoan also claims to protect funds from theft and hacking by keeping them in bank-grade offline crypto vaults.
Two-factor authentication is an additional layer of protection that CoinLoan users can employ to keep their accounts safe. CoinLoan even has a bug bounty program to encourage those who find and disclose security flaws in their software.
Ultimately, it is still your responsibility to keep your passwords and devices safe. CoinLoan is a great place to generate a return and contract loans, but if you’re not planning on doing either, it’s best to save your cryptocurrency in a wallet you handle, such as Ledger or Trezor.
The Estonian Intelligence Unit has granted CoinLoan a supervised and reputable financial institution license. As a result, CoinLoan adheres to the latest financial guidelines established in Europe and internationally, guaranteeing the appropriate levels of safety and security.
CoinLoan is also registered with the Financial Action Task Force (FATF), the Financial Crimes Enforcement Network (FinCEN), and the Monetary Authority of Singapore (MAS), among others.
The CoinLoan Wallet is a helpful digital asset management tool that allows you to
- Move your coins freely between wallets;
- Make withdrawals and deposits;
- Transfer payments from your cryptocurrency wallet.
If a crypto loan platform doesn’t have a mobile app, that’s not the end of the world. Nevertheless, it is a feature that would be beneficial to have, particularly if you make frequent purchases of cryptocurrency and shuffle about assets in your interest account.
CoinLoan offers a free mobile app for Android and iOS operating systems. Because the app and the web version provide the same functionality, you can use the app on your mobile device to check the balance of your interest account, borrow cryptocurrency, and trade.
To get in touch with CoinLoan’s helpful and professional customer care team, all users need to do is send a message to support@CoinLoan.io.
The crew is responsive, and there is a lively Telegram group where users can get the inside scoop on all the newest developments. CoinLoan also has a presence on Twitter, where users can ask questions and share feedback.
CoinLoan Pros and Cons
- Provides fiat and crypto lending services;
- Free deposits/withdrawals;
- No lending fees;
- Offers flexible and fixed interest accounts;
- Boasts crypto-collateral loans.
- Those who choose not to use the CLT currency will receive less interest in their investments.
CoinLoan is a trustworthy cryptocurrency lending platform that enables you to generate interest on your crypto holdings. This service has been officially vetted and approved by the financial authorities, so clients can feel secure and make use of the platform’s many benefits, including top-notch security and helpful support staff.
CoinLoan’s meteoric rise in the cryptocurrency world can be attributed to its service quality, including round-the-clock live chat assistance, a clear and simple interface, and a cutting-edge mobile app for managing your assets on the go.